Mike Ashley in shock as Sports Direct overtaken by rival and no longer market leader
Mike Ashley isn’t having much luck these days…
The entrepreneur saw Sports Direct relegated from the FTSE100 earlier this month, whilst he is also trying his level best to demote Newcastle United with his shambolic running of the football club.
Added to this he has MPs threatening with him contempt of the House of Commons, a tribunal with Jonas Gutierrez accusing him and the club of disgusting treatment and disability discrimination as he fought cancer.
Whilst his lawyers were also in court this week arguing that he isn’t welching on paying out on a £15m verbal contract (agreed whilst out drinking) with finance expert Jeffrey Blue.
Mr Blue claims that Mike Ashley promised him £15m if he could use his expertise to get the Sports Direct share price above 800p, something which duly happened.
However, the claimant says Ashley only paid him £1m for his services.
As recently as only seven months ago, the Sports Direct share price was still over that 800p mark, only for Mike Ashley and his retail empire to be caught up in a whirlwind of accusations and bad publicity on how he runs his affairs.
When trading finished on Thursday ahead of the Easter break, Sports Direct had fallen to 365p, losing 20% of its value in the last week alone.
This latest further collapse of the Sports Direct share price has also triggered another development.
Newcastle fans are not the only ones to have suffered from his arrogant and manipulative ruthless ownership, as we are only part of his business jigsaw.
Back in 2011 when JJB Sports was on its last legs, Mike Ashley bragged to the City at a presentation:
“I will finish off JJB first and then I’ll move on to JD (Sports).”
As recently as December 2015 (three months ago), Sports Direct was worth £4.3bn and JD Sports £1.9bn.
Today, the respective values are now Sports Direct £2.1bn and JD Sports £2.2bn.
As well as having superior product lines and not looking like a jumble sale, JD Sports is also now UK’s most valuable listed sportswear chain, pushing Ashley and SD into second place. As they say, second is nowhere.
It isn’t just Newcastle fans who will have a smile on their face if Mike Ashley and his rotten business empire continues to nosedive.
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